5.2.15

HSBC Services PMI: January 2015


Acceleration in new orders helped activity in India's services sector expand at a faster rate in January than in the previous month. The HSBC Services Purchasing Managers' Index (PMI) rose to 52.4 points from 51.1 in December, marking the third straight month of expansion after seeing stagnation in October.
A reading above 50 signals expansion on the index based on survey of 350 private sector firms.
The revision of official base year of GDP from 2004-05 to 2011-12 saw shrinking in the share of services sector from 57% to 51%. The overall GDP growth for 2013-14 was revised from 4.7% to 6.9%.
Reflecting this, the sub-index for new business rose to 52.1 from 51.8.
Both cost and output inflation in the services sector faced pressure and rose, but the bank's economist expects the Reserve Bank of India to cut interest rates further.
RBI kept repo rate unchanged in Tuesday's policy meet after a 25 basis points cut in January, leaving repo rate at 7.75%.Official data shows that inflation remains well under control, with wholesale inflation rising lower than expected in December at 0.11% while retail inflation, the primary gauge for RBI, stood at 5%.The composite PMI output index of the manufacturing and services sectors rose to 53.3 points in January from 52.9 in the previous month.There was sustained growth of new business in January, extending the current sequence of expansion to nine months that could be attributed to a solid demand in the economy and new marketing initiatives, the report said. The services sector was, however, upbeat about the outlook due to improvement in demand conditions and market initiatives.The composite PMI that combines both services and manufacturing sectors climbed to 53.3 from 52.9 in December.


Home Secretary shown the door

Home Secretary Anil Goswami, one of the few holdovers in the Modi administration from the United Progressive Alliance era, resigned from his post late on Wednesday after being told to quit or be sacked amid allegations that he had tried to influence a CBI investigation. He has been replaced by Rural Development Secretary LC Goyal.
In a late night order, the government said it had accepted “the request of Anil Goswami for voluntarily retiring from service with immediate effect“ and his term stood curtailed.
Goswami's ouster, the first time a senior bureaucrat has been forced to quit by the government for questionable conduct, was a foregone conclusion after his boss and Union Home Minister Rajnath Singh took the view that his continuance was “untenable“ because he tried to influence CBI in the sensitive and high-profile Saradha chit fund scam investigation.
Sources said Goswami, a 1978 batch officer of the Jammu & Kashmir cadre, had admitted to the home minister that he had leaned on CBI to try and stop the arrest of Saradha scam accused and former Congress minister Matang Sinh last week. They said Goswami had told the home minister in a telephone call on Tuesday evening from Jammu and again in person on Wednesday during an hour-long meeting in North Block that he had not initiated the call to CBI but Sinh had called him and handed over the phone to a CBI officer. The call was recorded as Sinh's phone was under CBI surveillance.
Singh then met CBI Director Anil Sinha separately for half-an-hour, who informed the home minister that the investigating agency had submitted a report to the Prime Minister's Office (PMO). Goswami was also summoned to PMO on Wednesday evening to explain his stand. Singh had briefed the prime minister of the developments on Tuesday night. Sources said Prime Minister Narendra Modi also decided that Goswami could not be allowed to continue and the home secretary tendered his resignation after visiting PMO.
Goswami's successor Goyal, a 1979 batch officer of Kerala cadre, has prior experience in the home ministry where he served as a joint secretary in its internal security division between 2002 and 2007. This episode comes as an unwelcome distraction for the BJP-led central government at a time senior ministers are engaged in pulling out all stops to try and ensure the party's victory in this week's Delhi elections.
Last week, the government had curtailed the term of Sujatha Singh to re move her from the foreign secretary's post although she had tenure until the end of July as part of a two-year fixed post. Goswami, who has already technically retired as he is more than 60 years old, too had a fixed two-year tenure that runs until June 30. He was appointed to the post by former home minister Sushil Kumar Shinde.
Government sources, meanwhile, revealed that Singh had been “warned“ soon after he became the home minister about Goswami's close association with Matang Sinh. But Goswami was still among the few bureaucrats who managed to survive a large-scale reshuffle that saw several UPA-appointed officials transferred from their posts in the Modi government.
Goswami, these sources said, had told Rajnath Singh in the early days of the government that while he had been close to Congress ministers, especially Ghulam Nabi Azad and Shinde, he would work dutifully for the new administration and follow orders. But they said it was also no longer possible for the government to persist with him because he had tried to save an accused involved in the Saradha scam.

Surat's DREAM city

The Gujarat cabinet, chaired by chief minister Anandiben Patel, on Wednesday approved the proposal to form a special purpose vehicle (SPV) to establish a new city in Surat called Diamond Research and Mercantile (Dream) city.The CM will lay stone of the new city on February 15.
With an intention to providing international market of diamond trade at home front, Surat Dream City will be developed over 2,000 acre of land. According to a state government release, world's 90% diamonds are polished and cut in Gujarat in different pockets like Surat, Navsari, Bhavnagar and Amreli, but the industry lacks proper facilities for its trade.Once the Dream city project is realized, traders from all over the world will be able to come here and sell rough diamonds directly. They will be also able to purchase polished diamonds from the same place.
Surat Diamond Bourse (SDB) will come up in the Dream city over an area of 1.50 crore square feet.

Of Delhi opinion poll surveys....


A day after five opinion polls put Aam Aadmi Party (AAP) in the driver's seat in Delhi polls, another five opinion polls on Wednesday found BJP edging ahead in the race to the 70-member assembly . As many as four surveys predicted BJP to get a clear majority . Surveys by India TV-C Voter, The Week-IMBR, IBN 7-Data Mineria and Zee-Taleem Research Foundation (TRF) gave BJP 36 out of 70 seats. News Nation, on the other hand, predicted a hung assembly with BJP winning around 31-35 seats and AAP notching 30-34.
It, however, put Arvind Kejriwal ahead of Kiran Bedi as the preferred choice for CM with 45% people voting for him against 33% for Bedi.
The India TV-C Voter poll gave AAP 31 seats and Congress just two, while The Week-IMBR predicted 29 seats for AAP and four for Congress. Zee TV-TRF gave a range of 32-36 seats for the BJP while AAP was expected to get 30-34 seats. It predicted just four seats for Congress. IBN 7-Data Mineria's survey gave AAP only 27 seats, predicting seven seats for Congress. News Nation, however, predicted no more than three-five seats going to Congress with one expected to be won by another party .
The surveys came on a day that an internal survey by AAP claimed a clear majority for it, giving itself 51 seats followed by 15 for BJP and four for Congress. AAP leader Yogendra Yadav, a psephologist, said in the best case scenario, AAP may get 57 seats and in the worst, it would bag at least 44 seats.
The India Today-Cicero pre-poll survey on Tuesday had projected that AAP would get 38-46 seats and BJP would secure 19-25 seats.Congress was placed way behind with only 3-7 seats. An average of the five poll surveys whose results were declared on Monday found AAP forming the government with clear majority of 36 seats and BJP securing 30.


4.2.15

Somewhere in Beijing....


The Chinese President breaks protocol and meets Foreign Minister Sushma Swaraj.

Somewhere in Mumbai....


 



The Queer Azaadi march held last week.....

Cost of Living Index